Value of Active Management and Avoiding Closet Indexers

The speaker differentiates between passive and active management, emphasizing the value of finding great companies, ensuring low correlation, and holding meaningful positions. They criticize low-act-to-share mutual funds with numerous positions and small holdings as they believe in the importance of truly believing in the companies in one's portfolio. The speaker's primary concern lies with 'closet indexers,' not passive strategies, as they feel such indexers tarnish the reputation of active managers.